Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (November 2008)
23 slides from Helix Energy Solutions's corporate update, Nov 3, 2008
Slide 1: Company Update November 2008
Company Update November 2008
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All such statements, other than statements of historical fact, are statements that could be deemed "forward-looking statements
Slide 3: Helix Profile
ie HELIX ENERGY SOLUTIONS Helix Profile
Slide 4: The Helix Mission
The Helix Mission Helix Energy Solutions Group provides life-of-field services and development solutions to offshore energy producers worldwide. Helix actively reduces finding and development costs through a unique mix of offshore production assets, service methodologies, and highly skilled personne
Slide 5: Helix Defined
Helix Defined World-class global services contractor offering critical offshore field development services / oil and gas production
Slide 6: Consistent long-term sustainable growth in a cyclical business
Consistent long-term sustainable growth in a cyclical business Reservoir Ownership Adds Value Backlog for services Enables utilization for new assets/ services Adds incremental returns through production with lower F&D costs Provides incremental cashflow allowing accelerated services growth
Slide 7: Contracting Services and Production Facilities assets
Contracting Services Production Facilities Marco Polo TLP (50%) Independence Hub Semi (20%) Drilling / Completion Q4000 w/ Drilling Upgrade* *upgrade completed in 2008 Construction Pipelay Intrepid Express ROV 39 ROVs 2 ROV Drill Units 7 Chartered Vessels 6 Trenchers (200 - 2000hp) Shelf Constructio
Slide 8: MODU DP Q4000 with Drilling Upgrade
MODU DP Q4000 with Drilling Upgrade Slimbore drilling capabilities added to a proven rigless well intervention platform ideally suit the Q4000 to meet increasing demand for deepwater drilling services 2008 Market Launches
Slide 9: i-Trencher ROV System
i-Trencher ROV System The state of the art i-Trencher deepwater trenching and burial system is the most powerful and adaptable ROV in the Helix fleet 2008 Market Launches
Slide 10: MV Well Enhancer
Helix's newbuild vessel delivers advanced Rigless Well Intervention capabilities to North Sea operators 2009 Fleet Expansion MV Well Enhancer
Slide 11: MV Caesar
Caesar is among the world's largest deepwater construction vessels, a "floating factory" capable of laying pipelines up to 42 inches in diameter 2009 Fleet Expansion MV Caesar
Slide 12: MV Helix Producer I
The Gulf of Mexico's first Floating Production Unit is designed to restore profitability to marginal fields without the use of a production platform 2009 Fleet Expansion MV Helix Producer I
Slide 13: Strategic Focus on Deepwater Contracting Services
Strategic Focus on Deepwater Contracting Services Established services presence initially with Intrepid, Express and Q4000 Q4000 drilling upgrade in 2008 increases capabilities Caesar, Well Enhancer and Helix Producer I will significantly expand capacity and EBITDA in 2009 and beyond Oil and Gas Exp
Slide 14: Near Term Objectives
Near Term Objectives 2008 Restore Gulf of Mexico production shut in by Hurricane Ike Protect balance sheet 2009 Deliver new assets into fleet Reduce debt Continue unlocking the value in the deepwater prospect portfolio through exploration drilling with partners on a promoted basis Bring on newly dev
Slide 15: Strategic Objectives
Strategic Objectives Primary goal - maximize shareholder value Maximize debt reduction from positive free cash flow to position the balance sheet for future growth Continue to evaluate strategic alternatives likely to increase shareholder value, including: Sell or spin off all or part of Oil and Gas
Slide 16: Helix Historical Trends
eo HELIX Helix Historical Trends (S amounts in millions, except share and per share amounts) 2003 ©2004» 2005 «= 2006.«S 2007 2008E ©~= 2008 YTD. Revenues $ 396 $ 543 $ 799 $ 1,367 $ 1,767 $ 2160 $ 1,607 Enterprise Value $2,043 $ 3,262 $ 3,226 $ 4135 $ 5539 $ 2688° $ 2688 - Adjusted EBITDAX 127239 3
Slide 17: 2009 Outlook
2009 Outlook We are working on our 2009 budgeting process and expect to complete by year end. However, our strategy and planning for 2009 is presently based upon the following key assumptions: Oil and Gas assumptions Production rate of 55 - 75 Bcfe Commodity price deck of $70 oil, $7 natural gas CAP
Slide 18: Financial Information
ie HELIX ENERGY SOLUTIONS Financial Information
Slide 19: Consistent Top Line Growth
Consistent Top Line Growth * 2008 forecast 2000 2001 2002 2003 2004 2005 2006 2007 2008* Contracting Services 110 164 240 259 300 523 937 1183 1600 Oil & Gas 70.8 63.4 62.8 137.3 243 276 430 585 560 ($ amounts in millions) $2,160 $1,767 $1,367 $799 $543 $303 $227 $181 $396
Slide 20: Earnings Per Share
Earnings Per Share - - 2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. - - 2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - - 2008 results include oil and gas property dispos
Slide 21: Significant Cash Generation - EBITDAX
Significant Cash Generation - EBITDAX* - -2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. - -2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - -2008 results include oil and ga
Slide 22: O&G - 2007 Reserve Report Highlights
O&G - 2007 Reserve Report Highlights Pre-tax PV-10 - $4.1 billion; After-tax PV-10 - $2.8 billion 677 Bcfe Proved Reserves 373 Bcfe shelf, 304 Bcfe deepwater Proved Developed / PUD Ratio - 33/67 Natural Gas / Oil Mix - 65/35 Exploration resulted in 244 Bcfe of reserve additions 376% reserve replacem
Slide 23: Helix Energy Solutions
Helix Energy Solutions
Helix Energy Solutions Group — Corporate Update (November 2008) on 6ix